Try Canon A580, its 8MP camera with high PIC quality, also it runs on two AA size cells which you can find anywhere or may use high capacity rechargeble Nimh.
Its elder brother A590 is a bit over your busget but has optical image stablization feature.
If you can afford, Sony W series has very good Picture quality and is very easy to use. I have used W120 (Rs.14,500).